A DEFEATED Labour MP has been appointed to a pounds-40,000-a-year job with a voluntary organisation funded by the Scottish Executive.

David Stewart, who lost the Inverness, Nairn, Badenoch and Strathspey seat at the general election, is the new assistant director of rural affairs at the Scottish Council for Voluntary Organisations (SCVO).

Following his defeat by Danny Alexander, a Liberal Democrat, Mr Stewart will start in the Inverness-based job next month. He replaces Helen Betts-Brown, who is retiring.

The SCVO, which promotes the work of Scotland's pounds-2.6bn voluntary sector, is two-thirds funded by grants and one-third funded by earned income.

About pounds-7m of its pounds-8.7m grant income last year was supplied by the executive, its agencies and quangos.

The organisation said Mr Stewart was the first former politician to join its staff, but strenuously denied any suggestion of cronyism.

It said he had been one of seven candidates interviewed for the post by a panel of SCVO officers, including Martin Sime, chief executive, and Teresa Bray, director of finance.

AnSCVO spokesman said:

"We are not unusual in being in receipt of funding from the executive.

"In terms of any accusations of cronyism, the reality is that David went through a fair and open recruitment process and was selected on the basis of being the best candidate."